LTPZ Dividend Type Payments

Although LTPZ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PIMCO 15+ YEAR US TIPS INDEX E to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

PIMCO 15+ YEAR US TIPS INDEX E (LTPZ)
Bid Ask Last Change Volume P/E Market Cap
62.00 62.45 62.45 -0.32 48K - 2.5B

LTPZ Dividend-Like Income Using Covered Calls

With LTPZ at 62.45, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 1.87 0.5
5% 3.12 0.9
10% 6.25 1.7

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On LTPZ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 63.00 0.25 31 0.8 0.55 (0.9%)
Dec 21 63.00 0.55 66 0.8 0.55 (0.9%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.PBR dividend   1.CLVS dividend
2.SPX dividend 7.MU dividend   2.SKX dividend
3.QQQ dividend 8.FXI dividend   3.CLF dividend
4.EEM dividend 9.IWM dividend   4.CRBP dividend
5.BAC dividend 10.AMD dividend   5.TLRY dividend

Want more examples? LTM Dividend | LTRPA Dividend